Countries with sustainability at their core pave a path for sustainability success for the companies working there, the people living there and the wider global impact.
These nations prioritise renewable energy, efficient resource management and eco-friendly policies to reduce their carbon footprint and preserve natural ecosystems.
Key factors that make a country sustainable include high renewable energy usage, effective waste management systems, robust public transportation networks, high recycling rates, significant forest coverage, innovative green technologies and strong environmental regulations.
Sustainable countries are leading the way in addressing climate change and environmental challenges while maintaining economic prosperity and social well-being.
10. Japan
Continent: Asia
Capital city: Tokyo
Head of sate: Emperor Naruhito
Japan has established itself as a leader in sustainability through innovative policies and corporate initiatives. Japan aims to have 50% of new cars produce zero emissions within the next decade and its major cities are targeting 100% carbon neutrality by 2050. The country boasts one of the world's most advanced recycling systems, with approximately 10 different categories of recyclables.
Headquartered in Japan, global automotive giant Toyota has been at the forefront of electric vehicle (EV) development. Toyota recently announced plans to build an EV battery plant for its Lexus brand on Kyushu Island, demonstrating its commitment to localising the EV supply chain. The company is also developing new battery technologies, including performance, popularised and high-performance batteries, aimed at improving driving range, reducing costs and decreasing charging times.
Beyond electrification, Japan's Hydrogen Society initiative aims to make hydrogen a major energy source by 2050. The country has built more than 150 hydrogen refuelling stations and aims for 800,000 fuel cell vehicles by 2030. However, high costs and limited infrastructure remain obstacles to widespread hydrogen adoption.
9. Netherlands
Continent: Europe
Capital city: Amsterdam
Head of state: King Willem-Alexander
The Netherlands is a leader in sustainability, with ambitious goals and innovative approaches. The country aims to achieve a circular economy and reduce greenhouse gas emissions to zero by 2050. Dutch cities like Amsterdam are at the forefront, with plans to become emission-free by 2030 and fully circular by 2050.
The Netherlands' "Green Deal" initiative aims to halve nitrogen emissions by 2030. As part of this, the government is buying out and closing up to 3,000 farms near nature reserves to reduce pollution which could cut livestock numbers by 30% and significantly improve water and air quality. However, the plan faces opposition from farmers concerned about their livelihoods.
The Netherlands excels in sustainable innovations, particularly in recycling and circular economy initiatives with Dutch companies accounting for 11.5% of EU patents for plastic recycling technologies. The country is also advancing next-generation proteins, with the government legalising cultured meat tastings to accelerate alternative protein development.
Sustainability is prioritised across all sectors, from high-tech to agriculture. The Netherlands features a collaborative environment where businesses, research institutes and government bodies work together to solve global challenges. This approach has positioned the country as a key player in creating a sustainable future for all.
8. New Zealand
Continent: Oceania
Capital city: Wellington
Head of government: Prime Minister Christopher Luxon
New Zealand's Zero Carbon Act, passed in 2019, commits the country to net-zero carbon emissions by 2050.
The country aims to halve biogenic methane emissions by 2050, with a 10% reduction by 2030. New Zealand's environmental policy is driving investment in eco-friendly technologies, particularly in the transport and energy sectors.
The government has planted more than 150 million trees since 2018 as part of its One Billion Trees Programme which aims to sequester 38 million tonnes of CO₂ by 2050.
The country is implementing significant water infrastructure reforms through the Three Waters Reform programme, with an estimated investment of US$75-100bn. New Zealand's tourism industry is also prioritising sustainability, with the Tourism Sustainability Commitment aiming to have every tourism business committed to sustainability by 2025.
The country is developing innovative measures like the Living Standards Framework and Indicators Aotearoa New Zealand to track progress beyond traditional economic metrics.
7. Canada
Continent: North America
Capital city: Ottawa
Head of government: Prime Minister Justin Trudeau
Canada has made significant strides in sustainability, particularly through its Ocean Supercluster initiative. This private sector-led partnership aims to grow Canada's ocean economy fivefold through focuses on developing and commercialising globally-relevant ocean solutions, spanning sectors such as fisheries, aquaculture, offshore resources, marine renewables and ocean technology.
The initiative has invested over US$320m in sustainable ocean projects since 2018, including an initiative using AI-powered underwater robots to map over five million square kilometres of ocean floor, aiding marine conservation efforts.
Canada's commitment to sustainability extends beyond oceans. The country aims to achieve net-zero emissions by 2050 and is investing in clean energy technologies. Canada also leads in sustainable forestry practices, with 37% of the world's certified forests.
These efforts position Canada as a key player in global sustainability initiatives, particularly in ocean-related innovations and conservation.
6. Germany
Continent: Europe
Capital city: Berlin
Head of government: Chancellor Olaf Scholz
Germany's Energiewende (energy transition) policy has driven renewable energy growth, with renewables now accounting for 46% of electricity production. The country aims to phase out coal power by 2038 and increase renewables to 65% by 2030. As of 2023, renewable sources account for 52% of Germany's gross electricity consumption, a substantial increase from just 3.4% in 1990,
Wind power and solar energy are the primary contributors to Germany's renewable energy mix. The country boasts over 82GW of installed photovoltaic capacity and 64GW of wind power capacity, making it a world leader in both technologies. In 2023, wind turbines alone produced more electricity than all lignite and hard coal plants combined for the first time.
Germany's commitment to sustainability extends beyond electricity generation. The country aims to have 80% of its electricity from renewable sources by 2030 and achieve a largely decarbonised power supply by 2035. To support this goal, investments in renewable energy jumped from €22.3bn (US$24.9bn) in 2022 to €36.6bn (US$40.7bn) in 2023.
The renewable energy sector has also become a significant employer in Germany, with around 370,000 people working in the industry as of 2010, more than double the number in 2004. This growth in green jobs demonstrates the economic benefits of the country's sustainability efforts.
Despite these achievements, Germany faces challenges in its energy transition. The country needs to expand and upgrade its transmission infrastructure to integrate larger amounts of variable renewable electricity effectively. Additionally, there is a need to extend sustainability efforts beyond the electricity sector to areas such as transport and heating.
5. Norway
Continent: Europe
Capital city: Oslo
Head of state: King Harald V
Norway is a global leader in sustainability, with ambitious goals and innovative approaches. The country aims to achieve carbon neutrality by 2030, two decades earlier than initially planned.
Norway's commitment to renewable energy is exemplified by its hydropower production, which accounts for approximately 95% of the country's energy generation.
Norway is pioneering sustainable transportation, with plans to ban the sale of fossil-fuel-powered cars by 2025. The country offers significant incentives for electric vehicle purchases, making it a leading market for EVs in Europe.
The Norwegian government is investing heavily in ocean conservation, allocating substantial funds for research and cleaning projects. Initiatives include a 100 million Krone (US$9.5m) seabed mapping project and another 100 million Krone for removing marine litter and microplastics.
Norway's sustainability efforts extend to waste management, with one of the world's most efficient recycling systems. The country employs innovative technologies like solar-powered self-compacting bins, which hold five times the capacity of traditional bins.
Norway's sovereign wealth fund, the world's largest at US$1.3tn, has divested from more than 300 companies due to sustainability concerns. This has pushed many firms to improve their environmental practices. The fund aims to make all its investments carbon neutral by 2050. Challenges include balancing ethical investments with maximising returns for Norway's citizens.
4. Switzerland
Continent: Europe
Capital city: Bern
Head of state: President Viola Amherd
Switzerland is a global leader in sustainable transportation, with one of the world's most efficient and environmentally-friendly public transport systems. The Swiss Travel System, which integrates trains, buses and boats, runs largely on renewable energy sources, with 90% of passenger trains powered by hydroelectricity. This comprehensive network allows both residents and tourists to travel sustainably across the country.
Switzerland's innovative waste management system recycles 52% of all waste, one of the highest rates globally. The country's "polluter pays" principle requires citizens to pay for non-recyclable garbage bags, incentivising recycling which has led to a 30% reduction in household waste since the 1990s.
The Swiss government aims to achieve net-zero emissions by 2050.
The country's focus on sustainability is also reflected in its democratic processes. Swiss citizens have directly influenced environmental policies through referendums, such as rejecting expensive underground rail networks in favour of more sustainable surface options. This combination of technological innovation, citizen engagement and comprehensive planning has positioned Switzerland as a model for sustainable development, however, the country faces challenges in reducing emissions from its financial sector, which indirectly finances significant global emissions through investments.
3. Finland
Continent: Europe
Capital city: Helsinki
Head of state: President Alexander Stubb
Finland created the world's first National Road Map to a Circular Economy (2016-2025), aiming to transform its economy to circular principles by 2035. This ambitious plan could contribute an annual added value of at least €3bn (US$3.3bn) to the Finnish economy by 2030.
Finland's sustainability efforts span various sectors. In education, more than 70,000 students studied circular economy principles between 2018 and 2019. The country is pioneering innovative solutions in renewable energy, nutrient recycling, low-carbon timber construction and waste management.
The Finnish company Spinnova has developed technology to produce textile fibre from wood pulp, using 99% less water than cotton production. Its first commercial factory, opened in 2022, can produce 1,000 tonnes of fibre annually however scaling up this technology to compete with traditional textiles remains a challenge.
Finland's efforts have gained international recognition, with Sitra winning the public-sector category of The Circulars at the World Economic Forum in Davos in 2018. Additionally, the annual World Circular Economy Forum, initiated by the Finnish Innovation Fund Sitra, showcases global circular economy solutions.
2. Sweden
Continent: Europe
Capital city: Stockholm
Head of state: King Carl XVI Gustaf
Sweden leads in sustainability with its ambitious goal to become the world's first fossil-free welfare state by 2045. The country has already achieved its 2020 target of 50% renewable energy eight years early, with 56% of energy coming from renewable sources in 2019.
Sweden's innovative "Hybrit" project aims to produce fossil-free steel using hydrogen instead of coal, potentially reducing Sweden's total carbon emissions by 10% if implemented at scale. The first fossil-free steel was delivered to Volvo in 2021, with commercial production planned for 2026.
Sweden also boasts the world's first electrified road, which charges electric vehicles as they drive, with plans to expand this technology nationwide.
Despite these achievements, Sweden faces challenges in decarbonising heavy industries and transport sectors, which still rely significantly on fossil fuels.
1. Denmark
Continent: Europe
Capital city: Copenhagen
Head of state: Frederik X
Denmark's capital, Copenhagen, aims to become the world's first carbon-neutral capital by 2025. The city has already reduced carbon emissions by 42% since 2005 through initiatives like district heating systems and promoting cycling – more than 49% of commutes in Copenhagen are now by bicycle.
The country aims to achieve carbon neutrality by 2050, with an ambitious interim target of reducing greenhouse gas emissions by 70% by 2030 compared to 1990 levels. Since 1996, the country has successfully reduced its CO₂ emissions by more than half.
In 2019, 47% of Denmark's electricity generation came from wind power, showcasing its commitment to renewable energy sources.
Denmark's sustainability efforts extend beyond energy. The country has established State of Green, an association of Danish companies, governmental and academic institutions, experts and researchers that seeks relevant solutions to enable the green transition. This initiative works to drive the global transition to a sustainable, low-carbon, resource-efficient society, encompassing renewable energies, energy efficiency, water management, waste management, climate adaptation, circular economy and integrated urban solutions
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